RBI's Rajan launches 'Sachet' to curb illegal collection of deposits

A week before the announcement of monetary policy, the Reserve Bank of India Governor Raghuram Rajan on Thursday launched "Sachet" a web portal to curb illegal collection of deposits. 

"The website will help enhance coordination among regulators and State Government agencies and thus be useful in curbing instances of unauthorised acceptance of deposits by unscrupulous entities", Rajan said.

Role of Sachet?

According to a release by RBI, Sachet is a SLCC (State Level Coordination Committees) website from which the members of public would be able to obtain information regarding entities that are allowed to accept deposits, lodge complaints and also share information regarding illegal acceptance of deposits by unscrupulous entities.

Talking about the SLCCs website, Rajan said that Sebi played a huge role in revitalizing SLCC. 

"There are many fly by night operators that don't fall in specific regulatory ambit but need to be stopped. Market intelligence from SLCC website will prevent Ponzi scheme crime. Need to bring regulators and law agencies to act on such operators. SLCC website aims to protect hard earned money of citizens", Rajan said. 

Features

--The members of the public on the website can check whether or not a particular entity seeking to accept public deposits is registered with any regulatory and whether the entity is permitted to accept deposits. 

--The website incorporates regulations prescribed by all financial regulators that different entities have to follow. 

--The members of public can file and track a complaint on this website if any entity has illegally accepted money from them and/or defaulted in repayment of deposits.

--The members can share information regarding any illegal activity done by an entity on this portal.

What is State Level Coordination Committees (SLCCs)?

As per the release, apart from RBI, SLCCs comprise various regulators, namely, SEBI, National Housing Bank (NHB), Insurance Regulatory and Development Authority (IRDA), Registrar of Companies (ROC) and concerned State Government departments, such as, Home Department, Finance Department, Law Department and various Police Authorities. 

" SLCCs meet frequently with the top officials from all these agencies to share information about the entities which are involved in unauthorised acceptance of deposits and initiate action against them in a timely manner".